[naru80]

Came across this article which claims Toyota earns about Rs 40k Per Fortuner. Dealer earns Rs 1 L. Govt earns Rs 18 L!

https://www.rushlane.com/toyota-earn...-12435713.html

I have no idea if this is true or not (esp since it is based on a Youtuber's analysis).

[AB0793]

Originally Posted by Jangra

I recently bought a Skoda Kodiaq - Sportline trim for which I paid Rs 43,81,800. For this discussion, I would keep the extras like Maintenance pack, Fast Tag, Accessories etc aside and just focus on Ex-showroom, RTO and Insurance - which was 42lacs. Below is the breakup

Attachment 2298863

On a serious note Kodiaq with it's subtle updates is absolutely worth the price tag, congrats and great choice with the sportline.

[ptaneja]

Here is a breakup for Carens Prestige Plus 1.4 manual petrol -

Total Cost of the Car - (rounded off)
Actual Billing from Kia to Dealer = 9,60,000
CGST @14% = 1,35,000
SGST @14% = 1,35,000
Cess @17% = 1,62,000
RTO Charges = 70,000
TCS @1% = 13,890
Insurance = 24,000 ( includes GST of approx 4000 )

Total On Road Cost = 15,00,000
Out of the above, surprisingly giving a total of approx 5,20,000 to the government as taxes.

[mpp1]

Boss your point of view is prudent and should be the only way to think about this lootage carried out by the government.
The way of life in all levels of life in India is still an absolute nightmare but to enjoy even that we have to pay an insane amount of money, while not even being able to ask a common sensical question.
As long as people will keep paying, the Government will keep looting and then spending this money to safeguard their votes on top of the corruption that exists in everything they do.
Moving would be the best solution for those who can swing that, for the rest of us hoping for a real change is the only thing we can do.

[Chrome6Boy]

Originally Posted by ptaneja

Here is a breakup for Carens Prestige Plus 1.4 manual petrol -

Total Cost of the Car - (rounded off)
Actual Billing from Kia to Dealer = 9,60,000
CGST @14% = 1,35,000
SGST @14% = 1,35,000
Cess @17% = 1,62,000
RTO Charges = 70,000
TCS @1% = 13,890
Insurance = 24,000 ( includes GST of approx 4000 )

Total On Road Cost = 15,00,000
Out of the above, surprisingly giving a total of approx 5,20,000 to the government as taxes.

This clearly shows that the Government is taxing the rich / people who spend on luxury items a lot more than the majority of car buyers. This has always been the case in India. Also TCS is not part of the cost of the car, it gets offset when we file tax returns.

[svsantosh]

Originally Posted by V.Narayan

...Without taxes and our functioning anarchy of a Govt you and I would be facing riots on the streets each day...

You seem to have predicted Sri Lanka a fortnight earlier than it happened sir

Taxes are what makes a country run, how much is less or more is to his own.

For those who think petrol (India) is expensive at 105Rs per liter (import - refine - distribute) - Petrol in Dubai is at nearly (4 AED) 80Rs per liter for oil found for free underneath. Beats logic one may think.

In relation to this thread, Dubai cars do not have anything other than a 5% VAT. An average car say costs 100,000 AED and you only pay 5000 AED as (VAT) tax, one time - that's it. Insurance is the usual additional. And what do you get in return. World class roads, signaling, freeways and roadside assistance service.

Should the average road user in India expect more for his ~50% overall taxation? Definitely yes.

PS - A pack of 20's cigarettes' in India is around 200Rs, in Australia is 1300Rs.

I repeat - Taxes are what makes a country run, how much is less or more is to his own!

[Sran]

https://youtu.be/UZ3tedBn_AE

Youtube algo recommended this video, don't know why. Can anyone tell us what exactly is he saying, I ain't smart enough to understand it.

[dragracer567]

Originally Posted by svsantosh

.

For those who think petrol (India) is expensive at 105Rs per liter (import - refine - distribute) - Petrol in Dubai is at nearly (4 AED) 80Rs per liter for oil found for free underneath. Beats logic one may think.

In relation to this thread, Dubai cars do not have anything other than a 5% VAT. An average car say costs 100,000 AED and you only pay 5000 AED as (VAT) tax, one time - that's it. Insurance is the usual additional. And what do you get in return. World class roads, signaling, freeways and roadside assistance service.

Agree with your outlook.

But just a small clarification regarding the UAE, the reason that prices are higher there compared to other Persian Gulf countries is because ADNOC i.e the Abu Dhabi petroleum company is the only one in UAE that produces and refines sufficient fuel to be used in the UAE (and exported offcourse) since almost all the oil reserves are in the Abu Dhabi Emirate. So, companies from other Emirates like ENOC in Dubai are forced to purchase fossil fuels at international oil prices, that's why the UAE government set the fuel prices generally higher to compensate for this. Offcourse, ADNOC makes a lot more money out of this as they control the entire value chain unlike ENOC, but that's just the way it is.

Again, I should stress that I agree with your outlook

[ashish_sax]

Originally Posted by Sran

https://Youtu.be/UZ3tedBn_AE

Youtube algo recommended this video, don't know why. Can anyone tell us what exactly is he saying, I ain't smart enough to understand it.

Nothing special in the video, Seems clickbaity

TCS is similar to TDS which again everyone knows that it can be offset with payable taxes for the year or can be refunded if not paying any tax. (Can be claimed by both Salaried and Businesses)

Any business owner already knows about depreciation which allows to offset the cost of any asset over the years, so the only thing that he added in my opinion in that case is that GST charged on the car (or part of it) can be added to the asset value hence saving money (only for business though)

GST ITC (Input Tax Credit) can only be claimed if you're a car dealer, running the car as a taxi or buying a car for your driving school.

[venom_op]

Originally Posted by sridhar-v

In Purchasing Power Parity terms you have paid 60.8/6 = 10.13 Lakh US$.

So cheer up. Yor are driving around in a $1 million car. Very few folks in the west can afford that!!

I’m sure he feels better! 😂

Also on a side note, I had made this calculation back in the day. I could buy a M3 here or I could buy a M3 in the US, fly there once a year in business class for 10 years and still have spare change for a few luxury holidays.

[sridhar-v]

Originally Posted by venom_op

I’m sure he feels better! 😂
Also on a side note, I had made this calculation back in the day. I could buy a M3 here or I could buy a M3 in the US, fly there once a year in business class for 10 years and still have spare change for a few luxury holidays.

Forget M3s etc. India is such a wonderful place that we have not really seen.
I am turning 64 in July. And even though I have seen a fair bit of the country we have estimated that there are at-least 60-70 nos of 15 day trips to do so that we can see all the important sights in India. And the people are so wonderful and by and large the countryside is so safe that it is a pleasure to drive around. We have been roaming around in a 800, WagonR, Ford Fusion & now a (15yr old)Grand Vitara.

So for the next 15 years you will find me gallavanting all over the place in cars, buses, trains and sometime planes.
It is going to be expensive - total will be around 100 to 150 lakhs. I would rather spend on travel than on fancy cars.

[THE-U-]

This is a very interesting thread. In my opinion, there are two aspects to the high taxes. One is to get money from those folks who are not really paying any income taxes; and; the other is to reduce the demand for vehicles. By reducing taxes (say GST to 5%) a number of larger and more luxurious vehicles will be within reach of more people. This will lead to cars with higher fuel consumption on the road increasing forex outflow. However, if the cars are made locally, more people are going to be employed and therefore the economy is going to do better.

Now, take the case of a Toyota LC 300. This is available in the ZX trim in Japan for about US$80K (From https://www.batfa.com/new-car-toyota...ruiser-300.htm). The Sahara ZX trim (5 Seater) from Australia is about US$100K OTR. Here in India, the ex-showroom is expected to be about US$270K (Rs.2Cr) and the Lexus LX600 is expected to be about US$400K (Rs.3Cr). If the LC300 sells for about Rs. 75 Lakhs OTR in India, one can imagine how popular that will be. Unfortunately, we only get the Fortuner for about Rs. 60 Lakhs. The Australian spec Ford Everest 3L Diesel is expected at about US$ 56K. If Ford brings this as a CBU, I am sure the Everest will be north of Rs.90 Lakhs or so but the numbers sold will be tiny compared to if they are able to sell this for under Rs. 50L. So, a specific approach of taxation is chosen to lead to desired outcomes. The government may be making the same amount of money with higher taxes on a smaller number of cars as with lower taxes on a higher number of cars sold.

[hondatoyotafan]

Originally Posted by thanixravindran

Apart from the transport sector, I could not understand how this is justified for businesses. So I become an 'Agony aunt' when there is a vent given in form of a thread. Shouldn't the bureaucracy correct this anomaly at least in 2020s?

If the costs of a car were not allowed for business expense i would have never bought a big car. Would have just zipped around in an alto.

[shankar.balan]

This is a superb thread.

In India, as salaried people, in the highest bracket, we get taxed at 33-34%. Then from this already taxed money, we pay anywhere from 5% to 18% GST and/ or VAT on anything and everything we consume.

And then if we are so audacious as to want to spend some of our hard-earned money on a nice car, then we have to shell out more by way of road taxes and GST and so on, maybe adding another 25-30% to the price of the car.

And then, of course, we are privileged owners of a car and have paid road taxes. But then the Govt, in its infinite wisdom, dismisses us as mere Bourgeois wannabes and doesn't even design proper roads and infrastructure. Of course, for the privilege of using whatever broken surfaces they do give us, we have to pay vast tolls.

Of course, we need fuel to fill these cars we bought. So again, in keeping with its anti-bourgeois, pure austerity-inspired measures, the Lords in Government make us pay almost 70% of the cost of a litre of petrol or diesel towards taxes and excise.

So basically, when all is said and done, the taxes one pays in India are more or less equivalent to what one may pay in, say, Sweden or France. However, the uniqueness of this situation in India is that we get NOTHiNG, NIX, NADA back in return for what we pay. Not even accountability.

This has got to be the worst ROI in the world, as a Return on Investment or Return on Capital Employed.

[shadkhan]

Nice thread and opinions.
Remember,
1. The poor are powerful because of their unity & numbers (thus vote bank)
2. The ultra rich are powerful as they fund the political parties
So, both of them can make the govt work for them.

We, on the other side, are a minority with no unity. Wouldn't be surprised if they increase the taxes even more.

The only good thing I see in this fiasco is that if the taxes are to be dramatically reduced, there will be 10x+ times more cars on our already crowded roads.